Top image created by Microsoft Copilot.
Premium smartphones aren’t cheap. Top line smartphones from brands like Samsung and Apple cost well over $1,000. If you want a snazzy new foldable device, you could be paying more than $2,000 when all is said and done. Either way, you want to get as much value as possible from a phone you spend so much money on. Yet people also love to upgrade to the newest, shiniest phone as soon as it comes out, which usually means every year. What’s more, the latest phones come with more years of software and security support, affording them longer lives than ever. These are just two of the many reasons fueling the trade-in, secondary, or as called in the industry B-stock, business.
Are People Buying Used Phones?
During a webinar about Samsung B-stock phone trade-ins, Joe Dube, Director of Mobile Accounts for B-Stock, the world’s largest B2B marketplace for B-stock devices, says that the mobile secondary market was valued at US$72.9 billion in 2023, according to IDC, outpacing the primary market. But this isn’t translating to a downturn for the sales of new phones, says Craig Feely, Head of Certified Re-Newed/Trade-in, Samsung Electronics America. Rather, it’s a “resurgence of used” alongside steady growth in new purchases as well. In 2023, more than 195 million used phones shipped worldwide, and this is expected to grow to 257 million by 2028.
Samsung is one of the biggest phone manufacturers, and Feely says 34 million of its phones sold since the company partnered with B-Stock in 2017. There have been over 33,000 transactions of 1.9 million devices.
Why Buy Used?
There are many reasons that you might want to consider buying used or refurbished goods like phones. But the most obvious is to save money. If you want a premium phone but can’t afford it, waiting and buying one on the secondary market can save you a bundle and let you get the phone you actually want versus buying a step-down model. This is becoming more prevalent nowadays as the price of premium phones is going up.
Further, keeping used phones in the market has environmental benefits. Not only does this keep a usable phone from taking up space in your drawer, it also keeps it out of landfills. Retailers benefit with trade-in options that save customers money on new phones when they trade-in an old one and provides them with another source of revenue. The retailer can offer used phones at a discount or at least ensure that it is safely recycled. This is precisely why many retailers and even brands themselves are offering enhanced trade-in and guarantee programs, says Feely, which is helping drive growth. “You will see more large-scale retailers and carriers continue to invest in trade-ins,” he adds.
Not surprisingly, the secondary phone market tends to see a rise just after a big phone launch. The February and March and August and September timeframes after big January and July new device announcements, respectively tend to be a peak time for trade-ins. This is especially since retailers, carriers, and brand stores offer trade-in credits.
Which Phones Sell Best Used?
You might think that only the most premium phones sell best as used devices since they’re the ones that customers are most looking to save money on. But this isn’t the case. Samsung says that 38% of total pre-owned smartphones are models that cost the buyer US$400 or more. While the company also recently saw an increase in the US$600+ segment, the under US$200 segment has surprisingly also been growing. The latter can sell well if it makes it to the right market, he notes, including those where people are less interested in flagship specs and tend to opt for prepaid plans, MVNO, and online marketplaces. “It creates an opportunity for buyers looking for [Samsung Galaxy] A series devices to find those untapped markets since the demand increases,” says Feely.
Samsung Galaxy S23
But typically, the phones that sell best are ones that are a generation or two old. For example, when it comes to Samsung, Feely says the two generations old Galaxy S23 is holding its value more than the Galaxy S21 and Galaxy S22. Along with Samsung’s extended software and security support (these newer devices come with seven OS updates and seven years of security updates) this is also thanks to Samsung’s certified renewed program, which has an impact on residual value. With that program, phones are about 25-50% of the launch price with a 12-month warranty and new battery when you buy it used. “Devices are holding their value more over time,” he reiterates.
Feely also says Samsung Galaxy Ultra models sell well, particularly through the warranty insurance channels, because they are the ones customers are most buying on the front end. When it comes to trade-ins and trade-ups at a direct-to-consumer level, base models like the Samsung Galaxy S21, S22, and S3 are top sellers. He adds that with a US$350 trade-in, for example, customers can get a Galaxy flagship device for just US$100-US$150 out of pocket. “It’s a phenomenal deal for customers,” he adds.
In terms of phones from all brands, Dube says that pretty much “everything sells.” The conversion rate for the B-Stock website’s listings is an incredible 100%, he adds, so “there’s no shortage of demand for every type of product.”
He recalls auctions last month that even included Apple iPhone 6 models. These phones are long out of OS updates and security support timeframes, yet there’s still demand for them as an affordable entry into the iPhone ecosystem for those who just need a basic device.
“There’s no big winner in the secondary market,” explains Dube. “Everything sells [and] there’s a ton of competition [because] this stuff has tons of life left. There’s never an issue where we have low sellers.”
Dube does admit, however, that some devices hold their value longer or at a higher percentage, like the Apple iPhone Pro Max series versus the base models.
What about foldables? Feely says Samsung has seen incredible success with the Galaxy Flip and Fold 5, which have since been replaced by the Flip 6 and Fold 6 as the newest models in the line. Samsung hasn’t launched a direct-to-consumer trade-in program for these yet but confirms that the company will do so eventually.
Trade-Ins And Used Phones Are Hot Right Now
As premium smartphone pricing continuously creeps up, it’s no surprise that customers are turning to trade-ins and used devices. Retailers are, in turn, ramping up their offerings in this space while marketplaces like B-Stock are capitalizing on the trend on a larger scale with businesses looking to upgrade devices for teams of employees.
Before buying a used device, it’s important to consider where you’re buying from, and ensure that it’s in optimal shape, or maybe just has a few scratches. Some are open box or returned items that were never or barely used. Look into warranty coverage as well.
Trade-ins and B-stock can save you a bundle, and when purchases from the right place, come with reassurances that you are buying a good quality, sometimes even brand-new, device that’s backed by a warranty and software support. The side benefit is that this also keeps these devices in the market and in consumers’ hands for longer, extending the lives of devices that are five or six years old, even older.
“Any used device out of landfill is a good thing,” says Feely and Dube, “and we should continue to find homes for these devices across all price points.”
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